A Kia will be the first Korean passenger car to roll off a Malaysian production line, despite the fact that a Hyundai joint venture assembly project was announced first.
The ‘Job One’ 1.6-litre Kia Spectra, a rival for models made by Malaysia’s Proton and Perodua, should roll off the line at the AMM contract assembly plant in Pekan, Pahang, in May.
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Owned by DRB-Hicom, AMM has been building only the Proton Satria since assembly of Citroen cars and the Citroen AX-based Proton Tiara ceased some time ago.
Up to 5,000 of AMM’s 60,000 annual capacity will be taken up by the Kia contract in the first year, with volume rising to 10,000 later.
Hyundai, which owns Kia, will sell cars through a joint venture formed last month between Oriental Holdings Bhd and the existing franchise holder for Hyundai in Malaysia, Hyumal.
Hyundai will not have any equity in the new joint venture which is called Oriental-Hyundai Motor Sdn (OHM) and capitalised at $M50 million ($US13.2 million).
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By GlobalDataWhile AMM builds Kias, the Oriental Assemblers plant in Tampoi, Johor, will assemble Hyundais. A Sonata sedan is likely to be first off the line, although the Elantra sedan and the Trajet minivan are also being considered. The plant reportedly lost its Honda assembly contract recently.
